DC Property Manager Licensing Exam 2026/2027 –
Questions & Detailed Answers with Rationales
PART I — PROPERTY MANAGEMENT FUNDAMENTALS
1. What best describes a property manager?
A. A person who only sells residential property
B. An agent who manages real estate for an owner for compensation
C. A person who performs only construction work
D. A person who appraises property for taxation
Answer: B
Rationale: A property manager acts as an agent for the owner in
matters involving property management and is compensated for those
services.
2. Under District of Columbia law, a property manager generally acts
on behalf of:
A. The tenant only
B. The government only
C. The owner of real estate
D. The lender only
Answer: C
Rationale: A property manager's fundamental relationship is with the
property owner, whose interests the manager represents within the
scope of the management agreement.
,3. Which activity generally falls within property management?
A. Managing rental operations
B. Issuing marriage licenses
C. Performing criminal investigations
D. Preparing federal tax returns for unrelated businesses
Answer: A
Rationale: Property management includes activities associated with
operating and managing real estate for an owner.
4. Which document establishes the authority of a property manager
to act for an owner?
A. Property management agreement
B. Tenant's driver's license
C. Building inspection sticker
D. Utility bill
Answer: A
Rationale: The management agreement establishes the contractual
relationship, duties, authority, compensation, and responsibilities of
the manager.
5. A property manager should primarily follow which source when
performing authorized management duties?
A. Personal preference
B. The management agreement and applicable law
C. Tenant rumors
D. Social media comments
,Answer: B
Rationale: The manager must comply with the management agreement
while also following applicable federal, District, and local laws.
6. Which duty requires a property manager to act with reasonable
care and competence?
A. Ordinary care
B. Speculation
C. Personal preference
D. Confidentiality waiver
Answer: A
Rationale: Property managers owe owners a duty to exercise ordinary
care in performing management responsibilities.
7. Which is an important fiduciary-type responsibility when handling
owner funds?
A. Mixing funds for convenience
B. Accounting properly for money received
C. Spending funds without authorization
D. Giving owner funds to unrelated parties
Answer: B
Rationale: Managers must properly account for money and property
received in which the owner has an interest.
, 8. A property manager learns of a material defect affecting the
property. What should the manager generally do?
A. Conceal it
B. Timely disclose the material fact to the owner as required
C. Destroy the records
D. Tell only a friend
Answer: B
Rationale: Property management duties include timely disclosure to
the owner of material facts of which the manager has actual knowledge
concerning the property.
9. Which principle requires a manager to protect confidential client
information?
A. Confidentiality
B. Competition
C. Advertising
D. Delegation
Answer: A
Rationale: Confidentiality protects personal and financial information
received from the client, subject to legal requirements and authorized
disclosures.
10. A manager receives rent on behalf of an owner. The manager
should:
A. Keep it without records
B. Account for it properly
Questions & Detailed Answers with Rationales
PART I — PROPERTY MANAGEMENT FUNDAMENTALS
1. What best describes a property manager?
A. A person who only sells residential property
B. An agent who manages real estate for an owner for compensation
C. A person who performs only construction work
D. A person who appraises property for taxation
Answer: B
Rationale: A property manager acts as an agent for the owner in
matters involving property management and is compensated for those
services.
2. Under District of Columbia law, a property manager generally acts
on behalf of:
A. The tenant only
B. The government only
C. The owner of real estate
D. The lender only
Answer: C
Rationale: A property manager's fundamental relationship is with the
property owner, whose interests the manager represents within the
scope of the management agreement.
,3. Which activity generally falls within property management?
A. Managing rental operations
B. Issuing marriage licenses
C. Performing criminal investigations
D. Preparing federal tax returns for unrelated businesses
Answer: A
Rationale: Property management includes activities associated with
operating and managing real estate for an owner.
4. Which document establishes the authority of a property manager
to act for an owner?
A. Property management agreement
B. Tenant's driver's license
C. Building inspection sticker
D. Utility bill
Answer: A
Rationale: The management agreement establishes the contractual
relationship, duties, authority, compensation, and responsibilities of
the manager.
5. A property manager should primarily follow which source when
performing authorized management duties?
A. Personal preference
B. The management agreement and applicable law
C. Tenant rumors
D. Social media comments
,Answer: B
Rationale: The manager must comply with the management agreement
while also following applicable federal, District, and local laws.
6. Which duty requires a property manager to act with reasonable
care and competence?
A. Ordinary care
B. Speculation
C. Personal preference
D. Confidentiality waiver
Answer: A
Rationale: Property managers owe owners a duty to exercise ordinary
care in performing management responsibilities.
7. Which is an important fiduciary-type responsibility when handling
owner funds?
A. Mixing funds for convenience
B. Accounting properly for money received
C. Spending funds without authorization
D. Giving owner funds to unrelated parties
Answer: B
Rationale: Managers must properly account for money and property
received in which the owner has an interest.
, 8. A property manager learns of a material defect affecting the
property. What should the manager generally do?
A. Conceal it
B. Timely disclose the material fact to the owner as required
C. Destroy the records
D. Tell only a friend
Answer: B
Rationale: Property management duties include timely disclosure to
the owner of material facts of which the manager has actual knowledge
concerning the property.
9. Which principle requires a manager to protect confidential client
information?
A. Confidentiality
B. Competition
C. Advertising
D. Delegation
Answer: A
Rationale: Confidentiality protects personal and financial information
received from the client, subject to legal requirements and authorized
disclosures.
10. A manager receives rent on behalf of an owner. The manager
should:
A. Keep it without records
B. Account for it properly
